ALTITUDE HOLDINGS LIMITED

Executive Summary

Altitude Holdings Limited demonstrates growth in fixed assets but faces significant liquidity challenges due to high current liabilities exceeding current assets by nearly £1 million. The equity base has eroded substantially over the past year, increasing short-term credit risk. Credit approval is conditional upon stringent monitoring of liquidity and potential additional financial support from the principal shareholder.

ALTITUDE HOLDINGS LIMITED - Analysis Report

Company Number: 13164318

Analysis Date: 2025-07-29 21:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Altitude Holdings Limited is a micro private limited company operating in real estate letting and management. The company shows growth in fixed assets but persistent and increasing net current liabilities indicate working capital stress. Net assets have declined sharply from £34.5k in 2023 to £5.7k in 2024. While the company is not in liquidation or administration and remains active, the negative net current assets (working capital deficit of £954k in 2024) and shrinking equity base raise concerns about short-term liquidity and operational cash flow sufficiency. Approval for credit should be conditional on close monitoring of cash flow and potentially securing additional collateral or guarantees.

2. Financial Strength:

• Fixed assets increased significantly from £721k (2023) to £961k (2024), indicating capital investment or acquisition of property which aligns with its industry.
• Current assets are very low at £37k compared to current liabilities of £993k, creating a severe working capital deficit (£-954k).
• Net assets have deteriorated markedly from £34.5k to £5.7k, signaling erosion of equity and financial cushion.
• The balance sheet is heavily leveraged in the short term, implying reliance on creditor funding or loans due within one year.

3. Cash Flow Assessment:

• The substantial current liabilities relative to current assets suggest potential difficulties in meeting short-term obligations without refinancing or capital injection.
• Little information on cash or equivalents, but low current assets imply limited liquidity.
• Negative net current assets are a warning sign of liquidity risk, which may affect ability to service debt or operational payments promptly.
• The company’s sole director and shareholder should be assessed for willingness and ability to support with shareholder loans or capital contributions if needed.

4. Monitoring Points:

• Track net current assets and liquidity ratios quarterly to detect worsening working capital issues.
• Monitor any changes in fixed asset valuations or disposals that might affect balance sheet strength.
• Review the company’s ability to refinance or restructure short-term liabilities.
• Watch for changes in director’s shareholding or additional capital injections.
• Assess payment history and any overdue creditor balances that could escalate risk.